MARKETS CONTINUE TO TRADE IN GREEN

Indian equities were trading firm in the late morning session on hopes of FDI in retail being pushed through in Parliament later in the day, and also on firm Asian cues. The traders were seen piling up position in Metal, Realty and Capital Goods sector, while selling was being seen in IT, and TECk sector. In the scrip specific development, Aviation stock such as Jet Air India, Spice jet, Kingfisher Airlines edged higher as Civil Aviation Minister Ajit Singh stated that he has urged the petroleum minister to bring in more transparency in fixing aviation turbine fuel (ATF) rates. Banking sector were trading in green despite the global rating agency Moody's stating that the country's stressed banking system continued to have a negative outlook and that the burgeoning fiscal and current account deficits were a matter of concern. The NSE Nifty and BSE Sensex were managing to hold their psychological 5,900 and 19300 levels respectively. The market breadth on BSE was positive, in the ratio of 1487:771.
The BSE Sensex is currently trading at 19398.06 up by 49.94 points or 0.26% after trading in a range of 19463.25 and 19375.58. There were 22 stocks advancing against 8 declines on the index.
The broader indices were trading in green; the BSE Mid cap index was up by 0.49% and Small cap index was up by 0.72%.
The top gaining sectoral indices on the BSE were, Metal up by 1.58%, Realty up by 1.18%, Capital Goods up by 0.87%, Auto up by 0.67% and Bankex was up by 0.62%, while IT down by 1.24% and TECk down by 1.02% were the only losers on the BSE.
The top gainers on the Sensex were Sterlite Inds up by 3.32%, Tata Steel up by 2.26%, Tata Motors was up by 2.23%, Hindalco up by 2.22% and HDFC Bank up by 1.17%.
On the flip side, Wipro down by 1.83%, Tata Power down by 1.74%, Infosys down by 1.56%, Bharti Airtel down by 1.20%, and TCS down by 0.57% were the top losers on the Sensex.
Meanwhile, giving a sigh of relief to the aviation sector, civil aviation minister Ajit Singh has said that the government has no plans to regulate airfares; government just intends to make the pricing mechanism more transparent.
The minister said that 'What we are trying to do is make the system for deciding the fares transparent. Public should know what is the bucket system and the range they have been given should be reasonable.'

Civil aviation minister after meeting with Petroleum and Natural Gas Minister M Veerappa Moily, said on the issue of pricing of jet fuel by state oil marketing firms, that he has urged the petroleum minister to bring in more transparency in fixing aviation turbine fuel (ATF) rates. Singh expressed that airfares are high mainly because of soaring ATF and airport charges. 

Further, Singh said that he has sought Moily's intervention in allowing airlines to use airport infrastructure of state oil companies for importing ATF and has asked to direct oil firms to offer discounts on fuel purchases to state-run Air India.
The S&P CNX Nifty is currently trading at 5,902.55, up by 13.30 points or 0.23% after trading in a range of 5,917.80 and 5,902.55. There were 37 stocks advancing against 13 declines on the index.
The top gainers of the Nifty were Sesa Goa up by 3.22%, Tata Motors up by 2.23%, Tata Steel up by 2.22%, Hindalco up by 2.01%, and PNB was up by 1.37%.
On the flip side, Infosys down by 1.96%, Tata Power down by 1.79%, HCL Tech down by 1.74%, Wipro down by 1.70%, and Bharti Airtel down by 1.37%, were the top losers on the Nifty.
All the Asian markets were trading in green, Shanghai Composite was up by 3.01%, Hang Seng was up by 1.35%, Jakarta Composite gained 0.19%, KLSE Composite inched higher by 0.29%, Nikkei 225 was up by 0.16%, Seoul Composite was up by 0.40%, Straits Times was up by 0.40% and Taiwan Weighted gained 0.35%.

FIRM START

Indian markets have made a firm start after consolidating in last two sessions, taking cues from the Asian peers. Though, the US markets closed lower and initially there was gloom in the Asian Pacific region on the lingering concern of US 'Fiscal Cliff' and weak Australian economic growth. However, the domestic markets have made a solid start on a politically crucial day as after a fierce debate in Lok Sabha on the UPA government's decision to allow foreign direct investment or FDI in multi-brand retail there is a vote scheduled in the Parliament today. Back on street, there is across the board buying being seen in the early trade, as along with the front liners, the broader markets too are in demand. Metal pack has taken the lead on the BSE, while the Realty index too was continuing its momentum up along with capital goods and consumer durables. Though there is some weakness on the IT and technology counters.
The BSE Sensex opened at 19,434.85; about 50 points higher compared to its previous closing of 19,348.12, and has touched a high and a low of 19,463.25 and 19,397.98 respectively. The index is currently trading at 19,434.85, up by 86.73 or 0.45%. There were 24 stocks advancing against 6 declines on the index.
The market breadth on the BSE was strongly in favour of advances; there were 1,313 shares on the gaining side against 504 shares on the losing side while 72 shares remain unchanged. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices rose 0.69% and 0.78% respectively.
The top gaining sectoral indices on the BSE were, Metal up by 1.54%, Realty up by 1.34%, Capital Goods up by 1.06%, Consumer Durables up by 0.87% and Bankex was up by 0.83%, while IT down by 0.67% and TECk down by 0.63% were the only losers on the BSE.

The top gainers on the Sensex were Sterlite Inds up by 2.62%, Tata Steel up by 2.32%, Hindalco up by 2.05%, Jindal Steel up by 1.38% and Tata Motors was up by 1.36%.

On the flip side, Bharti Airtel down by 1.22%, Infosys down by 1.21%, Tata Power down by 1.03%, Wipro down by 0.77% and TVS down by 0.09% were the top losers on the Sensex.
Meanwhile, in the pre-budget recommendations to the government, the industry body, Assocham President Rajkumar Dhoot has advised raising personal income tax exemption limit to Rs 3 lakh, reducing service tax and excise to 8% from 12% and increase in deduction of interest on housing loan to 5 lakh to revive consumer demand and to boost investment. The pre-budget memorandum for 2013-14 was jointly released by the chamber including President Dhoot, Chairman and Co-Chairman of taxes council Ved Jain and J.K. Mittal and chamber's Secretary-General D.S. Rawat.
Dhoot has also asked for reduction of corporate tax to 25% from 30%, besides demanding grant of infrastructure status to special economic zones and industrial parks. According to Assocham's pre-budget memorandum for 2013-14, the base exemption limit of resident individual below the age of 60 years should be raised to Rs 3 lakh, to incentivize people to come into the tax net, ensure higher collection from greater compliance and encourage consumption and savings.
Moreover, the chamber said the tax base for goods and services has already expanded to generate high revenue and the government can selectively increase customs duty rates to neutralise the effect of lower tax rate of excise duty and service tax. Besides, by increasing customs rates, the government can protect the domestic industry from unfair competition from countries like China.
The S&P CNX Nifty opened at 5,906.60; slightly higher from its previous closing of 5,889.25, and has touched a high and a low of 5,917.80 and 5,906.00 respectively. The index is currently trading at 5,910.50, up by 21.25 points or 0.36%. There were 39 stocks advancing against 11 declines on the index.
The top gainers of the Nifty were Sesa Goa up by 2.75%, Tata Steel up by 2.29%, Hindalco up by 2.18%, JP Associates up by 1.92% and HDFC Bank was up by 1.33%.
On the flip side, Infosys down by 1.78%, Bharti Airtel down by 1.46%, Tata Power down by1.03%, HCL Tech down by 0.96% and Wipro down by 0.89% were the top losers on the Nifty.

All the Asian markets were trading in green, Shanghai Composite was up by 3.01%, Hang Seng was up by 1.35%, Jakarta Composite gained 0.14%, KLSE Composite inched higher by 0.29%, Nikkei 225 was up by 0.48%, Seoul Composite was up by 0.72%, Straits Times was up by 0.42% and Taiwan Weighted gained 0.58%.

BROADER MARKETS OUTPERFORM

Following a positive opening, Indian equity markets failed to maintain initial gains and slipped into negative territory amid some stock specific selling after last week's rally. The BSE benchmark - Sensex down by 41 points, while, Nifty fell by 8.15 points. In spite of a 5% hike in foreign institution investors' cap on debt investments, which is expected to lure FIIs, profit-booking has picked up pace. Investors were disappointed with the adjournment of parliament on Monday. In currency markets, Indian rupee slipped into red against dollar snapping a three-day rally as importers started purchasing American currency to take advantage of the currency's ascent to a three-week high. On sectoral front, realty, metal, capital goods, power were trading in green, while consumer durables, banks and FMCG stocks were trading in red. In global markets, Asian shares were trading mixed on Monday as further indications of a stabilizing Chinese economy improved investor sentiments, but gains were restricted by concerns that an impasse in US budget talks could tip the world's largest economy into recession. Back home, the market breadth favoring positive trend; there were 1,445 shares on the gaining side against 1,027 shares on the losing side while 123 shares remain unchanged.
The BSE Sensex is currently trading at 19,298.07 down by 41.83 points or 0.22% after trading in a range of 19,416.45 and 19,273.03. There were 14 stocks advancing against 16 declines on the index.
The broader indices were trading in green; the BSE Mid cap index was up by 0.98% and Small cap index was up by 0.80%.
The top gaining sectoral indices on the BSE were, Realty up by 1.67%, Metal up by 0.82%, Capital Goods (CG) up by 0.60%, Power up by 0.47%, and Auto was up by 0.46%, while Consumer Durables down by 0.48%, Bankex down by 0.43%, FMCG down by 0.33%, TECk down 0.21% and IT down by 0.03% were the top losers on the index.

The top gainers on the Sensex were Mahindra & Mahindra up by 1.71%, Tata Steel up by 1.62%, Maruti Suzuki up by 1.52%, Hindalco up by 0.95% and SBI was up by 0.93%.

On the flip side, HDFC Bank down by 2.06%, Bharti Airtel down by 1.39%, ITC down by 1.12%, Hero MotoCorp down by 0.82% and NTPC down by 0.68% were the top losers on the Sensex.
Meanwhile, indicating further improvement in the health of the Indian manufacturing sector, the seasonally adjusted HSBC Purchasing Managers' Index, a composite indicator of operating conditions in the manufacturing economy posted a good advancement in November, surging to their five-month high to 53.7 from 52.9 in October.
With this numbers, Indian goods-producing sector has shown output growth advancement for the forty-fourth consecutive month, backed by increase in order book volumes combined with a depletion of post-production inventories.
As per the report, new orders and export sales both increased at manufacturing companies in India during November. While, order book volumes showed fastest expansion since June, the new export orders reported sharpest growth in last five months. Demand was reportedly stronger in both domestic and international markets. In line with higher input costs, prices charged by manufacturers too increased during November.
Indian manufacturing companies increased their input buying during November for the straight 44-month and the pre-production inventories at manufacturing firms increased in November continuing since May. Despite a slow pace, job creation in the Indian manufacturing sector was recorded for the ninth successive month in November.  
The S&P CNX Nifty is currently trading at 5,871.70, down by 8.15 points or 0.14% after trading in a range of 5,899.15 and 5,859.70. There were 25 stocks advancing against 24 declines on the index, while one remains unchanged.
The top gainers of the Nifty were UltraTech Cement up by 3.07%, ACC was up by 2.91%, JP Associates up by 2.44%, M&M up by 1.72% and Ambuja Cement up by 1.54%.
On the flip side, HDFC Bank down by 2.00%, IDFC down by 1.82%, Bharti Airtel down by 1.31%, BPCL down by 1.29% and ITC down 1.09% were the top losers on the Nifty.
Asian equity indices were trading mixed; Taiwan Weighted was up by 0.26%, Nikkei 225 gained 0.13%, Seoul Composite gained 0.37% and Straits Times was up by 0.05%.
On the other hand, Hang Seng was down by 0.27%, Shanghai Composite was down by 0.44%, KLSE Composite down by 0.17%, Jakarta Composite was down by 0.14%.

FLAT START

ndian markets have made a flat start of the new week; there is some cautiousness on the street ahead of the vote in Parliament on FDI in retail, a step that could pave the way for further measures to revive the economy. The global cues too were not very supportive as the US markets ended flat on Friday, while the Asian peers were not in an enthusiastic mood despite good economic cues from China and Japan. On the domestic front too, there is not much that could support the markets to move up, as according to a private survey Corporate India's confidence level has declined in the second quarter of the current financial year on unfavourable local and global business environment. However, investment banker Morgan Stanley has raised India's FY13 GDP growth forecast to 5.4 per cent from 5.1 per cent, citing better-than-expected GDP growth for the September quarter. Back on street, the broader markets are outperforming the benchmarks, while on sectoral front Capital Goods and metal has taken the lead with gain of about a percent, though most of other sectors too are in green but FMCG is witnessing some profit booking.
The BSE Sensex opened at 19,392.53; just 3 points higher compared to its previous closing of 19,339.90, and has touched a high and a low of 19,416.45 and 19,318.14 respectively. The index is currently trading at 19,392.53, up by 52.63 or 0.27%. There were 16 stocks advancing against 14 declines on the index.
The market breadth on the BSE was positive; there were 1,192 shares on the gaining side against 614 shares on the losing side while 70 shares remain unchanged. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices rose 0.87% and 0.68% respectively.
The top gaining sectoral indices on the BSE were, Capital Goods up by 0.91%, Metal up by 0.90%, Realty up by 0.70%, Auto up by 0.66% and PSU index was up by 0.51%, while FMCG down by 0.08% was the lone loser on the index.
The top gainers on the Sensex were Maruti Suzuki up by 1.52%, M&M up by 1.21%, Tata Steel up by 1.04%, SBI up by 0.73% and Dr Reddy's lab was up by 0.73%.
On the flip side, HDFC Bank down by 1.34%, ONGC down by 1.17%, NTPC down by 1.14%, Sun Pharma down by 0.95% and Cipla down by 0.85% were the top losers on the Sensex.
Meanwhile, core industries' output grew 6.5% in October 2012. This overall performance is much better than the 0.4% growth recorded in October last year. During April-October 2012-13, the cumulative growth rate of the core industries was 3.7% as against their growth at 4.3% during the corresponding period in 2011-12. The growth spike in October is largely attributed to the robust output growth in coal (10.9 per cent) and petroleum refinery products (20.3 per cent).
Coal production with a weight of 4.38% in the index, registered a growth of 10.9% in October 2012 compared to its negative growth at (-) 8.8% in October 2011.Coal production recorded a growth of 8.7% during April-October 2012-13 compared to its negative growth at (-) 5.4% during the same period of 2011-12. Petroleum refinery production with a weight of 5.94% in IIP index grew by 20.3% in October 2012 compared to its growth at (-) 2.9% in October 2011. While in cumulative terms, Petroleum refinery production registered a growth of 7.3% during April-October 2012-13 compared to its 3.5% growth during the same period of 2011-12.

Cement production which occupies weight of 2.41% in the index, registered a growth of 6.8% in October 2012 against its 0.3% growth in same month last year. The cumulative growth of Cement Production was 7.7% during April-October 2012-13 compared to its 3.3% growth during the same period of 2011-12. Moreover, Fertilizer production with a weight of 1.25% registered a growth of 2.0% in October 2012 against its growth at (-) 2.1% in October 2011. While in cumulative terms, Fertilizer production registered a negative growth of (-) 4.5% during April-October 2012-13 compared to 0.2% growth during the same period of 2011-12.

Furthermore, Steel production along with the electricity generation with weight 6.68% and 10.32% registered growth 5.9% and 5.2% in month under review against its 4.2% and 5.3% growth in October 2011. Cumulatively, Steel production registered 3.0% growth during April-October 2012-13 compared to its 8.7% growth during the same period of 2011-12. Cumulative growth of Electricity generation was 4.8% during April-October 2012-13 compared to its 8.7% growth during the same period of 2011-12.
The S&P CNX Nifty opened at 5,878.25; slightly lower from its previous closing of 5,879.85, and has touched a high and a low of 5,899.15 and 5,868.15 respectively. The index is currently trading at 5,868.55, down by 11.30 points or 0.19%. There were 25 stocks advancing against 25 declines on the index.
The top gainers of the Nifty were UltraTech Cement up by 2.76%, Maruti Suzuki was up by 1.57%, M&M up by 1.10%, SBI up by 0.86% and Dr Reddy's up by 0.83%.
On the flip side, IDFC down by 1.76%, HDFC Bank down by 1.37%, Kotak Bank down by 1.33%, NTPC down 1.17% and Axis Bank down by 1.09% were the top losers on the Nifty.
The Asian markets were showing mixed trend; Shanghai Composite was up by 0.28%, KLSE Composite down by 0.17%, Jakarta Composite was down by 0.01% and Taiwan Weighted was down by 0.21%.
On the other hand, Hang Seng was up by 0.14%, Nikkei 225 gained 0.52%, Seoul Composite gained 0.30% and Straits Times was up by 0.24%.